Govt to establish “National Petroleum and Gas Company”

November 25, 2021 at 1:23 AM

Cabinet approval has been granted for the establishment of the “National Petroleum and Gas Company”.

The company will be established under the Companies Act (No. 7 of 2007) as a subsidiary company of the Lanka Petroleum Corporation.

The Government said it has been proved that fossil fuel / Petroleum and natural gas fields are available within our territory according to the research performed in the land area of M2 of the Mannar bed within the period 2001 to 2013.

Manufacturing fossil fuel / Petroleum and natural gas reduce the dependency on fossil fuel / Petroleum import for local consumption as well as it may create the opportunity to become an exporter of natural gases in the future and earn foreign exchange thereby.

The ‘National Policy on Sri Lankan Natural Gas’ has declared that the Government would take actions to establish a national natural gas company under the public-private partnership applicable to storing, construction of pipelines, transportation and distribution infrastructure facilities development, ownership, and monitoring including local natural gas exploration and production so that engaging in local exploration and production with commercial capability.

The Government said the national natural gas company is proposed to be established as a subsidiary company of Lanka Petroleum Corporation and the company will be entrusted with the responsibility of performing the activities and functions entrusted to it in terms of section V of Petroleum Resources Act No 21 of 2021.

Accordingly, the proposal to establish the” National Petroleum and Gas Company” under the Companies Act (No. 7 of 2007) submitted by the Minister of Power was approved by the Cabinet of Ministers.